Galaxy Digital, a well-known investment management company, has officially requested permission for a Bitcoin spot ETF. They anticipate that ETF approval could result in significant inflows of $14 billion within the first year, as well as a potential 74% surge in Bitcoin prices over the year after receiving approval.
Galaxy Digital Predicts BTC US$61 Thousand by the End of 2024
Conversation about Bitcoin ETFs has emerged again because one of the ETF products, namely the iShares Bitcoin Trust which is owned by BlackRock, has received registration at the US Clearing and Depository Institution (DTCC). This has fueled speculation that approval for a spot Bitcoin ETF may be coming soon.
Galaxy Digital estimates that if a spot Bitcoin ETF is approved, it would see billions of dollars in funds flowing.
"They argue that flows from registered investment advisors (RIAs) are expected to increase by as much as 50% in the first year and reach 100% in the third year. Meanwhile for the broker dealer and bank channels, growth will be slower, starting with a 25% increase in the first year and reach 75% in the third year With these assumptions, Galaxy Digital estimates that the total market accessible through Bitcoin ETFs will reach about $14 billion in the first year after launch, about $26 billion in the second year, and $39 billion in the first year. third year," said Galaxy Digital.
In further analysis of the Bitcoin price, Galaxy Digital stated that “this flow of funds will trigger a BTC price increase of approximately +6.2% in the first month of trading, then gradually slow to +3.7% in the 12th month, with an increase a total of +74% in the first year."
With these projections, Bitcoin is expected to reach a value of around $61,000 by the end of 2024, and this seems reasonable considering BTC's performance during the past 2021 market surge.
